Fabsec Limited - Accounts to registrar (filleted) - small 23.1.2

REGISTERED NUMBER: 04153086 (England and Wales)

Unaudited Financial Statements for the Year Ended 31 December 2022

for

Fabsec Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

J P Clemens

R J Williams

P M Norris

D Thompson

REGISTERED OFFICE:

Unit 516 Avenue E East

Thorp Arch Estate

Wetherby

West Yorkshire

LS23 7DB

REGISTERED NUMBER:

04153086 (England and Wales)

ACCOUNTANTS:

Haines Watts

Chartered Accountants

3rd Floor

56 Wellington Street

Leeds

West Yorkshire

LS1 2EE

SOLICITORS:

Jordans Solicitors

18 King Street

Wakefield

West Yorkshire

WF1 2SQ

FIXED ASSETS

Intangible assets

5

-

-

Tangible assets

6

578

1,043

578

1,043

CURRENT ASSETS

Debtors

7

868,553

870,038

Cash at bank and in hand

477,056

437,885

1,345,609

1,307,923

CREDITORS

Amounts falling due within one year

8

9,250

29,211

NET CURRENT ASSETS

1,336,359

1,278,712

TOTAL ASSETS LESS CURRENT LIABILITIES

1,336,937

1,279,755

CREDITORS

Amounts falling due after more than one year

9

2,239,000

2,239,000

NET LIABILITIES

(902,063

)

(959,245

)

CAPITAL AND RESERVES

Called up share capital

10

1,000

1,000

Retained earnings

(903,063

)

(960,245

)

SHAREHOLDERS' FUNDS

(902,063

)

(959,245

)

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2022.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2022 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 19 May 2023 and were signed on its behalf by:

P M Norris - Director

1.	STATUTORY INFORMATION

Fabsec Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Going concern

The directors confirm that they believe the company is still a going concern and that they will undertake to ensure that adequate financial resources are provided to the company to enable it to meet its liabilities as they fall due.

Turnover

Turnover is recognised by the company in respect of goods and services supplied during the year,

exclusive of Value Added Tax.

Intangible assets

Development costs, patents and trademarks are valued at cost on acquisition and are amortised in

equal amounts over their estimated useful economic lives of 5 and 10 years, being the periods in

which the products or services are anticipated to be sold or provided for use.

Patents - 10% Straight Line

Development Costs - 20% Straight Line

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated

depreciation and any accumulated impairment losses. Historical cost includes expenditure that is

directly attributable to bringing the asset to the location and condition necessary for it to be capable

of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their

estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Office equipment - 20% Straight Line

Computer equipment - 33% Straight Line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted

prospectively if appropriate, or if there is an indication of a significant change since the last

reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the profit and loss account.

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition

of financial assets and liabilities like trade and other debtors and creditors, loans from banks and

other third parties, loans to related parties and investments in non-puttable ordinary shares.

Taxation

Tax is recognised in the profit and loss account, except that a charge attributable to an item of

income and expense recognised as other comprehensive income or to an item recognised directly

in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been

enacted or substantively enacted by the balance sheet date in the countries where the Company

operates and generates income.

Research and development costs

Development costs are capitalised within intangible assets where they can be identified with a

specific product or project anticipated to produce future benefits, and are amortised on the straight

line basis over the anticipated life of the benefits arising from the completed product or project.

Where this is not the case, research and development expenditure is written off in the year in which

it is incurred.

Capitalised deferred research and development costs are reviewed annually, and where future

benefits are deemed to have ceased or to be in doubt, the balance of any related research and

development is written off to the profit and loss account.

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is

a pension plan under which the Company pays fixed contributions into a separate entity. Once the

contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in the statement of income and retained earnings

when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The

assets of the plan are held separately from the Company in independently administered funds.

Debtors

Short term debtors are measured at transaction price, less any impairment.

Creditors

Short term creditors are measured at the transaction price.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without

penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that

mature in no more than three months from the date of acquisition and that are readily convertible to

known amounts of cash with insignificant risk of change in value.

Operating leases: the company as lessee

Rentals paid under operating leases are charged to the statement of income and retained earnings

on a straight line basis over the lease term.

Interest income

Interest income is recognised in the statement of income and retained earnings using the effective

interest method.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 5 (2021 - 5 ) .

5.	INTANGIBLE FIXED ASSETS

Development

Patents

costs

Totals

£

£

£

COST

At 1 January 2022

and 31 December 2022

1,028,908

954,493

1,983,401

AMORTISATION

At 1 January 2022

and 31 December 2022

1,028,908

954,493

1,983,401

NET BOOK VALUE

At 31 December 2022

-

-

-

At 31 December 2021

-

-

-

6.	TANGIBLE FIXED ASSETS

Office

Computer

Equipment

equipment

Totals

£

£

£

COST

At 1 January 2022

1,533

9,670

11,203

Additions

-

11

11

At 31 December 2022

1,533

9,681

11,214

DEPRECIATION

At 1 January 2022

1,533

8,627

10,160

Charge for year

-

476

476

At 31 December 2022

1,533

9,103

10,636

NET BOOK VALUE

At 31 December 2022

-

578

578

At 31 December 2021

-

1,043

1,043

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade debtors

863,043

856,083

Prepayments and accrued income

5,510

13,955

868,553

870,038

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade creditors

5,322

24,799

Tax

30

4

Social security and other taxes

726

622

Pension Payable

506

-

VAT

2,666

3,786

9,250

29,211

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2022

2021

£

£

Cash calls

1,240,000

1,240,000

Loan notes

999,000

999,000

2,239,000

2,239,000

All loans are due to the shareholders. An agreement was made by all shareholders following the year end extending the repay date to no earlier than 31 December 2022. Subsequent agreements will be arranged as required in the future. The cash calls will be repaid out of profits.

10.	CALLED UP SHARE CAPITAL

2020

2019

£

£

Allotted, called up and fully paid

250 (2019 - 250) "A" Ordinary shares of £1.00 each

250

250

250 (2019 - 250) "B" Ordinary shares of £1.00 each

250

250

250 (2019 - 250) "C" Ordinary shares of £1.00 each

250

250

250 (2019 - 250) "D" Ordinary shares of £1.00 each

250

250

1,000

1,000

11.	RELATED PARTY TRANSACTIONS

License fees amounting to £195,510 (2021: £198,120) were received from the shareholder companies.The licence fee is payable by the four shareholder companies for the exclusive rights to manufacture the beams designed by The FBeam Software.

At the year end, £860,883 (2021: £856,083) was due from the shareholder companies and companies associated with them.

Included in creditors are Loan notes of £999,000 (2021: £999,000) and Cash calls of £1,240,000 (2021: £1,240,000) due to the shareholder companies.

No further transactions with related parties were undertaken such as are required to be disclosed under Section 1A of FRS 102.

12.	PENSION COMMITMENTS

The company operates a defined contribution pension scheme. The assets of the scheme are held

separately from those of the company in an independently administered fund.

The pension cost charge represents contributions payable by the company to the fund and amounted to £3,405 (2021: £3,236). There were £506 contributions payable to the fund at the balance sheet date for 2021 and 2022.